Illinois residents are championing a tax overhaul in the 2020 November elections. Opponents of the state’s current tax structure say the estate and other taxes force residents to leave for other states with more affordable tax systems. Illinois Democratic Gov. J.B. Pritzker proposed a graduated “fair” income tax package in March. A bill for Illinois to eliminate estate tax in 2020 has the support of Senate Democrats.
In the Spring Senate Executive Committee session, Illinois Senate President John Cullerton, a Chicago Democrat, advanced Amendment 1 to Senate Bill 689, to eliminate estate tax. This repeal is contingent on passage of the graduated tax amendment and would gradually eliminate $300 million in revenue. The estate tax currently only applies to estates worth more than $4 million, and it produces $305 million in revenue according to a 2020 estimate from the Commission on Government Forecasting and Accountability.
The measure passed the Senate with 33 votes. All but one Republican and 6 Democrats voted against the bill, with one Republican stating “the estate tax repeal is generally supported by Republicans, but his opposition was based on the fact that the repeal could be reversed at any time.”
In order for a graduated tax to become law in Illinois, three-fifths of both the state House and Senate must vote to put an amendment question on the 2020 presidential ballot. Voters will determine whether say on its passage.
If you are planning your estate and you are concerned about your options, an experienced and estate lawyer can advise you throughout the process. To talk to a probate, trust and estates attorney in Chicago or Lombard about how to make and store your will, contact the Estate & Probate Legal Group at (630) 382-8063.